* CSI300 +0.1 pct; SSEC +0.3 pct; HSI +0.4 pct
* Some rescue measures being delayed due to improving liquidity
* Major gold producers fall on bullion’s rout
SHANGHAI, July 21 (Reuters) - China stocks edged up on Tuesday morning in a more sedate mood as government rescue measures appear to have restored some stability to trading in the past week.
Signs that mainland stocks are beginning to find their feet also benefited the Hong Kong market, where the benchmark index Hang Seng rose 0.4 percent.
“The market is under the government’s control ... and investor sentiment has stabilized,” said Fu Xuejun, analyst at Huarong Securities Co.
“Over the past few trading sessions, there were few signs of panic selling. The market is getting back to normal.”
The CSI300 index rose 0.1 percent, to 4,165.91 points at the end of the morning session, while the Shanghai Composite Index gained 0.3 percent, to 4,002.64 points.
Shenzhen’s start-up board ChiNext extended its rebound, tracking its bullish U.S. counterpart, the NASDAQ .
Beijing had stepped in with a raft of emergency measures after China’s stock market plunged one third in a month-long rout starting mid-June, but with the liquidity situation improving, some of the rescue steps are being postponed.
A plan to raise 100 billion yuan via short-term bills by China Securities Finance Corp, the state-backed institution that provides margin financing and liquidity to the market, has been delayed, four sources familiar with the matter told Reuters on Monday.
The official China Securities Journal said on Tuesday there is little room for China’s volatile stock markets to dive further in the near term due to ample liquidity and a recovery in investor confidence.
Telecommunications and infrastructure stocks outperformed the market, while banking stocks remained weak. The CSI300 bank index was down 1 percent at midday.
Major Chinese gold producers, including Zhongjin Gold Corp and Shandong Gold Mining Corp fell, after the precious metal slumped.
Several state-owned companies, including Harbin Pharmaceutical Group and Changchun Yidong Clutch Co Ltd jumped to their 10 percent daily limit, as investors bet they would benefit from China’s reforms in the state sector.
The official Shanghai Securities News reported on Tuesday that China will soon launch its plan to overhaul the county’s creaking state-owned enterprises (SOE).
Stocks also rose in Hong Kong.
The Hang Seng index added 0.4 percent, to 25,504.07 points. The Hong Kong China Enterprises Index gained 0.6 percent, to 11,846.39.
The SOE reform hopes were also behind a 3.1 percent rise in the telecommunications subindex, led by a surge in Chinese telecom giants China Mobile, China Telecom and China Unicom. (Reporting by Samuel Shen and Pete Sweeney; Editing by Shri Navaratnam)